Feed Ingredients Report: Week Ending Sep. 7, 2018

Weekly Average Price History

Week	Corn	Soybeans	Wheat SRW
Sep. 9, 2018	3.54	8.29	4.92
Sep. 2, 2018	3.44	8.26	5.08
Aug. 26, 2018	3.54	8.59	5.26
Aug. 19, 2018	3.62	8.70	5.42

• The bean and corn markets are front and center this week as all eyes are on the September USDA World Supply and Demand (WASDE) report, which is expected to be released on Wednesday, Sept. 12. The September report is the first report where actual sample data is utilized to create an estimate. Bottom line on September crop report: there should be more potential trapdoors than springboards on next Wednesday’s 2018-19 U.S. supply update. USDA may be underestimating 2018-19 U.S. export demand for corn and wheat, while overstating 2018-19 soy demand, but those changes are more likely to be reported in follow up crop reports.
• Allendale estimated the U.S. corn yield at 177.7 bushels per acre and soybeans at 52.2 bushels per acre, following a producer survey. The USDA’s estimates are at 178.4 bushels per acre of corn and 51.6 soybean bushels per acre.
• Friday’s COT report showed commodity funds selling lightly in wheat and oilseeds, while maintaining positions elsewhere. In wheat, funds sold 16,000 contracts, 6,000 soybean meal contracts, and 9,000 soybean contracts.
• Funds are now long at 103,000 wheat (all combined) and 21,000 soybean meal while being short 57,000 corn, 63,000 soybeans, and 87,000 soybean oil contracts.
• Export sales were mixed this week with strong soybean meal and corn sales, but weaker oil and wheat sales. Wheat sales were slow at 14 million bushels, corn sales were much improved at 41.8 million bushels, and soybean sales were average at 24.7 million bushels.
• Oilseed product sales were mixed with net cancellations of 2,400 tons in soy oil, but meal sales were exceptionally strong at 358,800 tons. Year-to-date, wheat sales are down 24.9%, corn sales are up 7.4%, soybean sales are down 2.7%, soybean meal sales are up 19.6% and soybean oil sales are down 5.9%.
• China has sold about 71 million tons of corn out of reserves this season. Another 8 million tons of China corn reserves will be offered next week.

 Weekly Spotlight

Hurricane season is heating up with three named storms tracking at the southeastern U.S. Hurricane Florence is expected to the hit the Carolina’s this week.